FDA staff just endorsed J&J's single-shot vaccine, which could be approved for use now as soon as Friday. This vaccine's overall effectiveness, about 66%, is lower than Pfizer and Moderna's double-shot vaccines, but was still found to prevent 100% of hospitalizations and deaths (more here). If approved this week for emergency use, it could go a long way towards speeding up the "normalization" effort this year, as our Arielle Berger wrote a few weeks ago.
And yep, it's me writing this week, because I forgot to set up a fill-in (if you follow me on Instagram, you'll understand). Nice to check in with everybody, though! We crossed the 90,000 subscriber mark a few weeks ago (actually we're above 91,000 now), so a big thank you to all who have read and shared this since it was launched nearly two years back.
I may not be back from maternity leave for another month or two, but I am still watching the 10-year yield like a hawk. Will we cross above 1.5% before then? I better check to make sure it hasn't happened already today. The way these markets have been lately, nothing would surprise me.
Sure enough, we're heading towards 1.43% as I write this. No wonder it's upsetting the ark--err, apple cart--of tech stocks and momentum plays. I don't think the level of interest rates should be a big factor in what Amazon or Apple is worth in five or ten years, but I do know it messes with today's carry trades.
Why the move higher? Well, have you tried to hire anybody lately? In sectors and industries not directly affected by Covid, it's surprisingly difficult. It's a pretty tight labor market. Curious if you all are seeing the same thing (remember, you can always hit "reply" to reach me).
Until next time...